Problem 12-16A (Algo) Cost allocation in a service industry LO 12-1, 12-2, 12-3 Munoz Airlines is a small airline that occasionally carries overload shipments for the overnight delivery company Never-Fail, Inc. Never-Fail is a multimillion-dollar company started by Wes Never immediately after he failed to finish his first accounting course. The company's motto is "We Never-Fail to Deliver Your Package on Time." When Never-Fail has more freight than it can deliver, it pays Munoz to carry the excess. Munoz contracts with independent pilots to fly its planes on a per-trip basis. Munoz recently purchased an airplane that cost the company $6,804,000. The plane has an estimated useful life of 25,200,000 miles and a zero salvage value. During the first week in January, Munoz flew two trips. The first trip was a round trip flight from Chicago to San Francisco, for which Munoz paid $360 for the pilot and $310 for fuel. The second flight was a round trip from Chicago to New York. For this trip, it paid $310 for the pilot and $155 for fuel. The round trip between Chicago and San Francisco is approximately 4,900 miles and the round trip between Chicago and New York is 1,300 miles. Required a. Select if the costs mentioned below are direct or indirect. b. Determine the total cost of each trip. Complete this question by entering your answers in the tabs below. Required A Required B Select if the costs mentioned below are direct or indirect.